Summary
| PE Ratio* | |
|---|---|
| Highest | 10.00 |
| Median | 7.24 |
| Lowest | 0.81 |
| IPO Size (Cr.) | |
|---|---|
| Highest | 4633.38 |
| Median | 386.74 |
| Lowest | 13.94 |
The total funds raised through an IPO depend significantly on the company’s valuation. In mainboard IPOs, merchant bankers and advisors use P/E multiples, derived on basis of a company’s historical performance, future profits, and sector outlook. Valuation drives the IPO Issue size and affects the market capitalisation over a longer time period. Comparing the company’s valuation with peers in the same sector ensures that the IPO pricing is competitive and not overpriced or underpriced
The below mentioned are the forthcoming IPOs for which DRHPs have been filed recently and are in process of approval by the BSE or NSE exchange.
*The Revenue and PAT figures mentioned above are on the Annualised basis.
The Price-to-Earnings (P/E) multiple helps investors evaluate whether an SME IPO is fairly priced by comparing its valuation to industry peers. A high P/E suggests growth potential but may indicate overvaluation, while a low P/E signals affordability or weaker earnings prospects.
The P/E ratio is calculated as:
P/E Ratio = Issue Price ÷ Earnings Per Share (EPS)
It measures how much investors are willing to pay for each rupee of earnings, helping assess IPO attractiveness compared to industry benchmarks and financial performance.
Understand Importance of PE ratio in Detail.
A good P/E ratio depends on industry standards and growth prospects. Generally, a lower P/E (5-15x) suggests affordability, while a higher P/E (20x+) may indicate growth potential but could also signal overvaluation, requiring further analysis.
The Price-to-Earnings (P/E) ratio is a valuation metric showing how much investors are willing to pay per rupee of earnings. It helps compare a company’s market price to its profits, guiding investment decisions in IPOs and stock market investments.
IPO valuation considers financial performance, P/E ratio, industry comparison, revenue growth, debt levels, and market demand. Other factors include management quality, economic conditions, and investor sentiment, influencing whether an IPO is attractively priced for potential investors.
